An investment services licence may be one of four categories:

Category 1a: Licence Holders authorised to receive and transmit orders in relation to one or more instruments and, or provide investment advice and, or place instruments without a firm commitment basis but not to hold or control Clients’ Money or Customers’ Assets. (This Category does not include managers of Collective Investment Schemes.)

Category 1b: Licence Holders authorised to receive and transmit orders, and, or provide investment advice in relation to one or more instrument and, or place instruments without a firm commitment basis solely for professional clients and, or eligible counterparties but not to hold or control Clients’ Money or Customers’ Assets. (This Category does not include managers of Collective Investment Schemes.)

Category 2: Licence Holders authorised to provide any Investment Service and to hold or control Clients’ Money or Customers’ assets, but not to operate a multilateral trading facility or deal for their own account or underwrite or place instruments on a firm commitment basis.

Category 3: Licence Holders authorised to provide any investment service and to hold and control Clients’ Money or Customers’ Assets.

Category 4: Licence Holders authorised to act as trustees or custodians of Collective Investment Schemes.

Apart from delineating the nature of activities carried out by the licence holder, the licence category determines the amount of own funds the licence holder is required to hold and the amount of application fees and supervisory fees the licence holder is required to pay to the MFSA.